Texas Side Hustle Tax Calculator
Texas has no state income tax. Calculate your federal self-employment tax instantly.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
Great news for Texas side hustlers: The Lone Star State has no state income tax. That means whether you're freelancing in Houston, driving for DoorDash in Dallas, or running an online business from Austin, you won't owe any state income tax on your earnings. However, you still need to pay federal self-employment tax and federal income tax on your side hustle income.
How Side Hustle Taxes Work in Texas
Texas is one of nine states with no state income tax, making it one of the most tax-friendly states for side hustlers and freelancers.
What Texas side hustlers DO pay: - **Federal self-employment tax**: 15.3% (12.4% Social Security + 2.9% Medicare) - **Federal income tax**: 10% to 37% based on your total income - **No state income tax**: $0 to Texas
What this means: If you earn $10,000 from a side hustle in Texas, you'll save roughly $500-$900 compared to living in a state with 5-9% income tax rates. That's money that stays in your pocket.
What Texas Side Hustlers Owe
Let's say you're a single filer in Texas with a $55,000 W-2 job and $20,000 in side hustle income from selling products online, with $3,000 in business expenses.
**Your estimated taxes on the side hustle:** - Net self-employment income: $17,000 - Federal SE tax (15.3% of 92.35%): ~$2,403 - Federal income tax on side income: ~$3,740 (22% bracket) - Texas state tax: $0 - **Total additional tax: ~$6,143**
Compare this to California where you'd owe an additional ~$1,581 in state taxes, or New York where you'd owe ~$1,156 more. Texas residents keep more of their side hustle earnings.
Texas Tax Deadlines 2025
Since Texas has no state income tax, you only need to worry about federal deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026
Use IRS Form 1040-ES for federal quarterly estimated payments. The IRS requires estimated payments if you expect to owe $1,000 or more.
Common Deductions for Texas Freelancers
Even without state income tax, maximizing federal deductions saves Texas side hustlers money: - Home office deduction (simplified: $5/sq ft up to 300 sq ft) - Vehicle expenses (67 cents/mile for 2025) - Equipment and supplies - Professional services (accounting, legal) - Marketing and advertising costs - The 20% QBI deduction can significantly reduce your federal tax bill
Texas Side Hustle Tax FAQ
Does Texas have self-employment tax?
No, Texas has no state income tax or self-employment tax. However, you still owe federal self-employment tax (15.3%) and federal income tax on your side hustle earnings.
Do I need to file Texas state taxes for my side hustle?
No, since Texas has no state income tax, there's no state return to file for your side hustle income. You only file federal taxes.
Is Texas good for freelancers and gig workers?
Yes, Texas is one of the most tax-friendly states for self-employed individuals. With no state income tax, you keep more of your earnings compared to states like California or New York.
Side Hustle Calculators by State
More states coming soon. Use the main calculator for all 50 states.
Ready to calculate your taxes?
This calculator provides estimates only. For personalized advice, consult a qualified tax professional.
Calculate My Texas Taxes ↑